National Liquidators has successfully served as substitute custodian in hundreds of cases throughout the United States and surrounding countries. In order for arrest action to be initiated, several steps must be taken. National needs detailed information on the case, and requires the counsel or the plaintiff sign a "Vessel Arrest Authorization" to provide release and hold harmless language and to confirm payment responsibility. Upon receipt, our office will prepare a written estimate of arrest and custody charges. While we attempt to provide as accurate a preview as possible, unforeseen circumstances can arise making it difficult to estimate the final costs of a lengthy custody assignment. Of course, all case and client information submitted to National Liquidators remains confidential.

Initial Preparation and Arrest

National's investigation services, as they apply to commercial vessels, are indispensable for background development, scheduling verification or determining the location of a vessel. We can further develop ownership and charter issues and provide any necessary surveillance (for more information see Investigative Services, page 2). When we are notified of an arrest, our personnel are ready.

A well organized, legal execution of an arrest warrant involves substantial preparation. Upon receipt of your call, National Liquidators will negotiate dockage, tugs and pilots, research port regulations, evaluate cargo and crew issues, prepare and schedule security personnel, determine additional crew and Coast Guard requirements, and begin to coordinate efforts with the U. S. Marshal. National’s administrative staff is aware of all the legal intricacies of the Federal Courts. Our extensive experience, qualifications, and reputation have allowed us to streamline court approval. All personnel required throughout the process, including licensed captains, surveyors, engineering personnel, qualified mechanics, dock personnel and prescreened and approved security watchmen are part of our staff.

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Port Agency Relationships

National Liquidators’ vast experience allows us to be ready to act quickly. We are capable of handling vessel arrests virtually anywhere in North America and most surrounding countries. We have established agency relationships in the following port areas:

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Payment and Deposit

Prior to executing an arrest, National requires that your client submit a deposit equal to the estimated arrest charges for five days. Additional deposit funds may be required on larger vessels or on high dollar claims (i.e. mortgages). Please provide written confirmation that your client is prepared to submit additional funds once the arrest warrant is served. If your case is a crew issue or involves a financially burdened party, the deposit requirement may be waived.

Insurance

National Liquidators carries liability coverage as required by the Federal Courts in the amount of $5 million per incident on each vessel arrested and under our care. We also offer port risk coverage equal to the stated or surveyed value of the vessel. If port risk or increased liability limits are required by the court or by your client, we can place it upon short notice on your behalf. Certain federal court districts require port risk coverage and this should be verified prior to arrest. If you do not request port risk coverage, please provide verification that hull coverage is in place on the vessel at the time of arrest. If it is determined that the vessel is uninsured or coverage is at risk, we reserve the right to place port risk coverage and petition the courts for administrative relief, charging the premium as a custodial expense.

Security

National Liquidators will place United States Coast Guard licensed captains or experienced shipping personnel on watch duty during the period of custody. Most vessels are sufficiently covered by one watchman. However, circumstances such as immigration issues, cargo being loaded or discharged, or vessels having multiple entrances may require additional security. Security charges will be clearly defined in the initial written estimate.

Vessel Maintenance

National Liquidators' staff of licensed and qualified marine engineers and technicians provide ongoing maintenance on arrested vessels under our care. Our crews' capabilities include maintaining vessels in accordance with any demands of the court.

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Crew Payroll & Other Expenses

National Liquidators will handle all crew management, including the administration of payroll and applicable taxes. National Liquidators is well equipped to handle repatriation of foreign crew, which must be negotiated with the U. S. Customs Service. All expenses related to the vessel will be negotiated, evaluated and paid on behalf of the vessel by National Liquidators and when required, will be pre-approved by the court.

Periodic Budget & Expense Statements

Most federal court districts require that the custodian submit a report of expenditures on a vessel every two weeks. This is especially encouraged when crew expenses or other extraordinary costs are incurred. National Liquidators will in most cases submit a periodic budget to the lead plaintiff counsel for submission to the court system. National Liquidators will reserve the right to submit statements through their own counsel.

Vessel Arrest & Consulting Services

National Liquidators' vessel arrest custodian consulting services have provided assistance in hundreds of cases. In many instances, National has been instrumental in negotiating settlements by assisting counsel, eliminating the need for costly arrest. If you have a case pending for which this service would be beneficial, please contact our offices for further information.

Commercial Vessel Sales Program

National Liquidators has accrued extensive experience marketing and selling commercial vessels. Our professional, licensed brokerage staff has established relationships with ship buyers and dealers throughout the world. National advertises extensively through multiple media sources directed to the commercial marine market. Additionally, our website www.yachtauctions.com generates in excess of 1,000,000 hits per month, attracting visitors from over fifty countries. We welcome broker participation (for more information on the sale of commercial vessels refer to the Sales Program section on page 5).

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